ringledman
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There is a rather interesting book out titled SWAG (Silver, Wine, Art & Gold) Alternative Investments for the Coming Decade that brings up a couple of interesting investment concepts for the current economic climate.
Definancialisation - The author cites From Taleb's Black Swan- 'definancialisation of assets where value is not warehoused inside financial markets'.
The author goes on to cite SWAG investments as ideal in this regard - less complex financial instruments and tangible.
Financial Repression - The author quotes: 'a combination of controls on international capital flows with restrictions on domestic interest rates. The result is an artificially low cost of domestic funding to governments'. (Giovannini and Melo for the Americal Economic Review 1993).
AKA 'negative interest rates' and the prudent savers bailing out the government and reckless borrowers.
Again in such circumstances the investor should allocate to SWAG, citing the ability of these asset classes to best match the growth in M2 money supply that governments are printing at will.
An interesting topic. Clearly I believe one's asset portfolio should aim at 'de-financialisation' whether that be owning gold and silver (in physical possession), owning land (although easily taxable).
Essentially reducing the role of the financial industry in ones affairs.
Likewise going forward, governments of the entire Western world will create financial repression to the savers in society. Slowly pruning one's wealth at a rate of 2, 3, 4, 5% per year through stealth negative inflation rates. Again owning some SWAG is a small way of protecting ones wealth in such an environment.
I see the difficulty for the average investor to by into the wine and art section of the alternative asset market, although there are funds available. At first I was sceptical of these two asset classes but the author presents a rather compelling argument for their inclusion within a portfolio. Gold and silver IMO are an essential element for the small scale investor.
Thoughts on capital preservation strategies and asset allocation over the next decade?
Definancialisation - The author cites From Taleb's Black Swan- 'definancialisation of assets where value is not warehoused inside financial markets'.
The author goes on to cite SWAG investments as ideal in this regard - less complex financial instruments and tangible.
Financial Repression - The author quotes: 'a combination of controls on international capital flows with restrictions on domestic interest rates. The result is an artificially low cost of domestic funding to governments'. (Giovannini and Melo for the Americal Economic Review 1993).
AKA 'negative interest rates' and the prudent savers bailing out the government and reckless borrowers.
Again in such circumstances the investor should allocate to SWAG, citing the ability of these asset classes to best match the growth in M2 money supply that governments are printing at will.
An interesting topic. Clearly I believe one's asset portfolio should aim at 'de-financialisation' whether that be owning gold and silver (in physical possession), owning land (although easily taxable).
Essentially reducing the role of the financial industry in ones affairs.
Likewise going forward, governments of the entire Western world will create financial repression to the savers in society. Slowly pruning one's wealth at a rate of 2, 3, 4, 5% per year through stealth negative inflation rates. Again owning some SWAG is a small way of protecting ones wealth in such an environment.
I see the difficulty for the average investor to by into the wine and art section of the alternative asset market, although there are funds available. At first I was sceptical of these two asset classes but the author presents a rather compelling argument for their inclusion within a portfolio. Gold and silver IMO are an essential element for the small scale investor.
Thoughts on capital preservation strategies and asset allocation over the next decade?